Look at the rig count. Look at bankruptcies. Look at little guys getting bought. It’s long overdue. Gas is dead for several years. Hopefully this time next year oil is $75.
they say you can't go by rig count anymore..but everything else is spot on. All the directional stuff going on 1 rig can do the work of several.
There’s some truth to that but not everyone can do it the same. Some companies suck and aren’t sniffing what they should because of it. I don’t believe the recent rig drop is because of efficiencies in drilling.
I understand what you're saying, but it's still a relative comparison from one point in time to the next, say TTM change, for example.
agree...it's still a measurement but not sure just how much. Just going back a year it would be more prevalent...going back 5 years not so much. We're producing more oil than ever and doing it with fewer wells. I'm no oil expert but just what I've been told by people who keep an eye on that kind of stuff. Looks like the last of the remaining companies operated by McClendon has sold as well. Not another one out there like him.
The increase in production is slowing. Demand is increasing. There is almost no access to capital, so many can’t afford to drill and are going bankrupt. The market is pressuring companies to be FCF positive, further straining unconventional drillers. All this points to much higher oil prices in 2020.
I think we like $3.50 to $4.00 a gallon for gasoline is a good thing for Oklahoma!
Number of frac spreads is more telling. They will keep drilling to hold leases, but leave the wells uncompleted for want of capital.
